Banking shares extend fall, Bank Nifty sheds over 4% in two days

BOI, IndusInd Bank,YES Bank, BoB, PNB, Canara Bank, Union Bank of India and Axis Bank are down 4-5% on NSE.

Banking shares continued to remain under pressure falling by up to 5% for the second consecutive day, on fears that sooner-than-expected tapering by the US Fed will lead to lower inflows from foreign funds thereby reducing liquidity.

The National Stock Exchange (NSE) banking share index Bank Nifty was down 2.5% compared to 2% fall in the benchmark CNX Nifty.  Bank Nifty has fallen 4.5% or 498 points in past two trading sessions.

At 1510 hours, Bank of India and IndusInd Bank are down by 5% each, while YES Bank, Bank of Baroda, Punjab National Bank, Canara Bank, Union Bank of India and Axis Bank are fallen 4% each.

Federal Reserve meeting minutes signaled the central bank was on track to slow down its bond-buying program that has boosted the equity market. The minutes said the Fed members generally expect incoming economic data to be consistent with their outlook and thus warrant trimming the pace of purchases in coming months.